Bloomberg Intelligence analyst Eric Balchunas warned that Zcash (ZEC), a privacy-focused cryptocurrency, could steal the attention and capital currently allocated to Bitcoin (BTC).
“Zcash has the feel of third-party candidates like Gary Johnson and Jill Stein, and it seems better to incorporate their ideas into the major parties rather than split votes that could have significant consequences,” he says.
It’s worth making clear that Gary Johnson and Jill Stein are presidential candidates from the US minority parties, the Libertarian Party and the Green Party, and while they had no real chance of winning, they could take votes away from the major parties.
Balciunas uses this comparison to explain that ZEC could play a similar role for Bitcoin. According to him, While it will not compete for market leadership, it could potentially polarize the attention and interest that is focused on BTC today.
Similarly, experts believe that this is a “critical moment for BTC.” Balchunas suggested that although Bitcoin and zcash are different projects, some of zcash’s privacy ideas could be incorporated into BTC in a regulated way. This is to prevent market interest from becoming fragmented.
In other words, consider this an important time for Bitcoin, as it is in a phase of institutional adoption and regulatory expansion. Therefore, a fragmented ecosystem can impact ecosystem perception and investor confidence.
but, Balchunas’ mistake was overestimating ZEC’s performance and comparing it to BTC..
It should be noted that zcash has become a fashionable altcoin thanks to its outstanding performance, as reported by CriptoNoticias.
Over the past 12 months, ZEC has increased by 800%, as seen in the chart below.
This is just another altcoin, like many others that have already emerged and many others that will continue to rise. Mr. Balchunas is an expert on ETFs, not BTC, so he will likely amplify this issue. The analyst himself acknowledged this in his post, saying, “I’m just a fan of exchange-traded funds (ETFs).”
(Tag translation) Altcoin
